Penn Pharma offers both drug development and manufacturing services, including Clinical and Commercial dosage form manufacturing, as well as Clinical Packaging, Labeling, and global Storage, Distribution and Return Drug Services.

PCI is headquartered in Philadelphia and also runs a manufacturing site in Hay on Wye.

A spokesman for PCI said the combination of the American firm and Penn Pharma features the expertise of around 2,800 associates across 15 facilities in North America and Europe.

The two companies together manufacture and package both investigational and commercial medicines on behalf of their clients destined to more than 100 countries around the world.

Goodwin Procter LLP acted as legal counsel to PCI and Frazier Healthcare for this transaction.

The deal to buy Penn Pharma, which employs around 300 people in Wales, also provides a final exit for leading mid-market private equity firm LDC which invested £33m in 2007 with completion due shortly.

In 2013 Penn opened a new world-class, purpose-built contained manufacturing facility in response to market need for specialist containment solutions for the development and manufacturing of solid dose products containing highly potent compounds.

Earlier this year the business launched an additional capacity expansion programme for large-scale commercial manufacturing and packaging operations.

The continued investments made by Penn Pharma and the commitment to quality and customer service have ensured significant growth and has uniquely positioned the company in the specialist outsourcing market helping to grow existing business and drive significant opportunities with new customers.

“We are very excited about adding Penn Pharma’s expertise and experience in drug development,” said Bill Mitchell, President and CEO of PCI.

He added: “Penn Pharma is a recognized leader in this area and the opportunity to combine forces adds significant value for our clients.

“With Penn Pharma’s services, we can partner with clients at the very earliest stages of drug development to support them with drug formulation, analytical development, drug manufacturing, clinical packaging, global distribution, and ultimately supporting the product’s commercial launch.

“This addition expands our vision of lifecycle support from clinical trials through to commercialization for our clients’ lifesaving therapies.”

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